How is the leverage ratio determined in CFD trading?
Vantage offers two main types of leverage: overall account leverage and fixed leverage.
Overall account leverage:
This is the leverage ratio you choose for your trading account.
Fixed leverage:
This applies to specific products and doesn't follow your account leverage. You can find it under "margin percentage" in the product's "specification".
This applies to specific products and doesn't follow your account leverage. You can find it under "margin percentage" in the product's "specification".
The leverage ratio depends on the "margin calculation mode" shown in the product's "specification."
Here are the formulas for different margin modes:
- Forex: contract size * lot * margin percentage / leverage
- CFD-leverage: contract size * lot * open price * margin percentage / leverage
- CFD: contract size * open price * lot * margin percentage
- CFD margin initial: margin initial x lots x margin percentage
Note: The result will be in the margin currency, and if it's different from your account currency, the system will automatically convert it.
